Replies to post #397576 on Elite Pharmaceuticals Inc (ELTP)

[ELTP Emperor]

Delaware lost all my business and I recommend all of my clients stay out. Vehicles are being worked on to replace what we liked in Delaware. Wyoming, Texas, and maybe one other state will likely get all of our business

[WeeZuhl]

Lolololol, conflating the Musk case with Elite’s CEO successfully pulling the Co out of the gutter with his own money and the help of his other Co is laughable and extremely naive.

My post doesn't mention Musk even one time. My post does conflate the self deals of Elite's CEO with the entire fairness standard, which dictates the burden of proof is entirely on the board and CEO to prove Hakim's self deals are fair shareholders. One easy way to satisfy the entire fairness standard is to call a majority vote of the minority shareholders, which of course, as we all know, our self-dealing CEO has never done.

Once that very high threshold is met, the burden shifts entirely to the defendant board to demonstrate the transaction is inherently fair to the stockholders. And they have to demonstrate this in both the procedure and in substance itself of the deal. This is typically accomplished by a so-called “majority of the minority” vote: if independent directors present to the non-controlling shareholders the transaction in question and a majority of these shareholders ratify the deal, the deal is likely to not be reviewed by the court.